Oman's 2025 salary law: What every employer needs to do before the September deadline

Oman’s Ministry of Labour has announced revised guidelines that make it mandatory for employers to pay at least 75% of their workforce through the Wage Protection System (WPS), a government-backed electronic salary transfer system aiming to ensure transparent and timely wage payments. The directive, issued under Ministerial Resolution No. 729/2024, takes effect with September 2025 wages and will tighten further to a 90% threshold in November.

TL;DR:

• From September 2025, employers in Oman must pay at least 75% of salaries via the WPS; the threshold rises to 90% by November 2025.
  
  
  
• The WPS requires electronic wage transfers through Central Bank-regulated banks and financial institutions for private sector employees.
  
  
• The regulation is designed to protect workers’ rights, ensure salary transparency, and enhance labour market oversight.
  
  
  

What is the Wage Protection System (WPS)?
The WPS is an electronic platform that tracks salary payments made from employers to employees’ regulated bank accounts. Its main objectives are to guarantee that workers are paid on time, prevent salary fraud or withholding, and create an auditable digital record in line with Oman’s updated labour laws (Royal Decree No. 53/2023). The WPS is already a common practice in several GCC countries and forms a cornerstone of labour protection initiatives.

Implementation timeline and requirements
Starting with wages for September 2025 (payable in October), all employers are required to pay at least 75% of their workforce through the WPS. Two months later, the threshold increases: starting in November 2025 (payable in December), a minimum of 90% of an employer’s workforce must receive their salary through the WPS. All payments must be transferred via banks or financial institutions approved and regulated by the Central Bank of Oman .
Faster timelines for wage disbursement and tighter monitoring are part of the new guidelines. The Ministry of Labour will actively monitor compliance and impose financial penalties on companies that fail to meet these requirements.

Exemptions and oversight
A few employer exemptions apply, including cases of prolonged labour disputes, work stoppages beyond employer control of more than 30 days, officially recognized worker absconding cases (over 30 days), employees newly hired for under 30 days, or those on unpaid leave. These exemptions are designed to maintain fairness without penalizing employers for factors beyond their control.

The Wage Protection System reinforces Oman’s labour market regulation, supporting job security, a core concern for Omani workers while providing the Ministry with a robust tool for oversight. According to the National Centre for Statistics and Information, Oman had 864,600 Omani workers across all sectors as of June 2025. These regulations aim to boost job security and economic stability by enforcing structured and legally protected wage practices.

FAQ

• 1. What is Oman’s Wage Protection System (WPS)?
  The WPS is an electronic system ensuring employers pay salaries directly to employees’ bank accounts on time and transparently.
  
• 2. What is the new WPS compliance requirement for employers?
  From September 2025, employers must pay at least 75% of their workforce via WPS, increasing to 90% by November 2025.
  
• 3. Are there any exemptions to WPS rules?
  Yes, exemptions include labour disputes, work stoppages over 30 days, absconding cases, new hires under 30 days, and unpaid leave workers.
  
• 4. How does the WPS benefit workers?
  It guarantees timely payment of wages, reduces cases of salary withholding or delays, and creates a transparent payment trail.
  
• 5. What happens if employers fail to comply with WPS rules?
  Firms may face financial penalties and further labour ministry actions for non-compliance with wage payment regulations.